Nifty IT Rises Nearly 2% After Six-Day Slide; Infosys, HCL Tech Gain as US Shutdown Worries Ease

IT Index Rises Nearly 2%, Snaps Six-Day Losses on Hopes of US Shutdown End; Infosys, HCL Tech Gain Up to 3%

Indian IT stocks staged a strong comeback on November 10, with the Nifty IT index rising nearly 2%, snapping a six-day losing streak. The rebound was fueled by value-buying after a sharp correction and optimism surrounding a potential end to the US government shutdown, which bolstered investor sentiment across the sector.

At around 1:30 pm, the Nifty IT index stood at 35,760.60, emerging as the top sectoral gainer on the day’s trade. The rally was led by heavyweight IT names such as Infosys, HCLTech, Wipro, TCS, and LTI Mindtree, signaling renewed optimism among investors following a week of volatility.

Investors Turn to Value Buying After Sharp Correction

Over the past week, the Nifty IT index had fallen nearly 2.7% between October 30 and November 7, weighed down by profit booking and global uncertainty. The recent pullback came after a stellar 7% rally in October, driven by strong Q2 earnings and upbeat guidance for the second half of FY25.

The sector’s fundamentals remain robust, supported by resilient demand for digital transformation, cloud adoption, and automation. However, short-term corrections opened opportunities for value-buying, as investors looked to re-enter quality names at lower levels.

“After a sharp correction, IT valuations look attractive again, particularly in the large-cap segment,” said a Mumbai-based fund manager. “With global risk sentiment improving, investors are accumulating IT stocks for the medium term.”

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Hopes of US Government Shutdown Ending Lift Market Sentiment

Adding to the optimism, progress in Washington towards reopening the US government boosted risk appetite globally. The US Senate, on November 9, advanced a House-passed bill to fund the government until January 30, alongside a package of full-year appropriations bills aimed at ending the 40-day-long shutdown.

If approved by the House of Representatives and signed by President Donald Trump, the measure could reopen the federal government as early as this Friday. “It looks like we’re getting very close to the shutdown ending,” Trump told reporters.

Market experts believe that a resolution to the shutdown is a positive trigger for Indian IT companies, which derive a significant portion of their revenues from the US. A functioning US government often leads to smoother project approvals, stronger corporate spending, and improved contract visibility for tech outsourcing firms.

“A possible end to the longest-running US shutdown is a clear positive for markets,” said Prashant Newnaha, Senior Asia-Pacific Rates Strategist at TD Securities. “We expect the House vote this week and the government reopening shortly thereafter.”

Analysts Retain Positive Outlook on Large-Cap IT Firms

Despite short-term volatility, analysts remain bullish on India’s leading IT companies. In a recent note, Jefferies reiterated its ‘Buy’ rating on TCS and Infosys, calling them “well-placed” to manage operational challenges, including the $100K visa fee hurdle for the Indian IT sector.

The brokerage expects stable deal wins and healthy margins in FY25–26, driven by the ongoing demand for automation, AI-driven services, and cloud migration. Among midcap IT firms, Jefferies highlighted Coforge as a preferred pick due to its strong execution record and robust order pipeline.

Infosys, HCL Tech Lead the IT Rally

Among individual gainers, Infosys shares jumped nearly 3% to ₹1,519.70 per share, making it the top performer on the Nifty IT index. HCLTech, LTI Mindtree, Wipro, and Mphasis followed closely, rising almost 2% each during the session.

Other prominent gainers included Persistent Systems, Tata Consultancy Services (TCS), Coforge, and Tech Mahindra, which all gained over 1% each.

The broad-based recovery across large and midcap IT counters suggests that the worst of the selling pressure may be over, at least in the near term.

Sector Outlook: Short-Term Relief, Long-Term Promise

Market experts believe the IT sector’s rebound could continue if macroeconomic cues remain supportive. The potential end of the US shutdown, coupled with improving global tech demand and stabilizing order inflows, provides room for a sustained recovery.

However, analysts also caution that volatility could persist in the short term amid global growth uncertainties, cautious enterprise spending, and high wage inflation in Western markets.

“IT companies remain key beneficiaries of digital transformation spending, but near-term growth will depend on US economic stability and currency movements,” said a senior analyst at a domestic brokerage. “A stable macro environment could reignite investor interest in Indian IT stocks.”

Conclusion: IT Index Poised for Recovery as US Shutdown Nears End

After six consecutive sessions of losses, the Indian IT index has bounced back strongly, driven by value-buying and renewed optimism about a resolution to the US government shutdown. With top players like Infosys, HCLTech, and TCS leading the charge, investor sentiment in the sector appears to be turning positive once again.

As global conditions stabilize and domestic fundamentals stay intact, experts believe the Indian IT sector could regain momentum heading into the next quarter, supported by steady demand from the US and Europe.

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